The Strategist

Boeing to reduce dividends, start layoffs

03/20/2020 - 09:03

Boeing may reduce dividends and begin to lay off employees of its enterprises, writes Dow Jones, citing informed sources.

Global Panorama
Global Panorama
The American aircraft manufacturing concern is now in an extremely difficult situation due to a sharp drop in air traffic as a result of the spread of the coronavirus: airlines around the world have reduced flights, a significant portion of their aircraft remains on the ground, and they are not going to buy new aircraft.

At the same time, Boeing still has not overcome the crisis associated with the suspension of flights of 737 MAX aircraft.

The aircraft concern lost about 70% of its capitalization in 2020. On the eve, Boeing announced that it was asking for financial assistance of at least $ 60 billion to support the entire aerospace industry in the United States, as the company, its suppliers and airline clients faced a serious crisis as a result of the coronavirus pandemic. Boeing said it expects to receive assistance both in the private sector and from the state. In particular, the aircraft concern may receive loans under state guarantees.

Boeing’s European competitor, Airbus SE, turned to European authorities for support. Its capitalization fell by almost 57% in 2020.

Boeing shares are losing 1.9% in trading on Thursday, Airbus securities rose 9.5%.